Four reasons why AMC accepts Bitcoin now

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During an earnings call on Monday, AMC CEO Adam Aron confirmed that the largest theater chain in the United States is entering the cryptocurrency markets and will start accepting Bitcoin (BTC) later. This year.

The unusual move is hardly surprising for the biggest theater chain considering the financial windfall it has enjoyed from its explosive Reddit-fueled stock rally this year.

At the start of 2021, AMC shares (AMC) were trading at around $ 2. Its stock is now trading at around $ 32, up nearly 1,500% since the start of the year, according to data from the Portfolio Insider chart.

We are also in the early stages of now exploring how AMC can participate in this new burgeoning cryptocurrency universe, and have been very intrigued by a potentially lucrative business opportunity for AMC if we smartly pursue serious crypto involvement. -money, Aron said.

The company is also exploring other avenues of crypto, Aron added.

Four reasons behind the adoption of Bitcoin by AMCs

Let’s start digging into the reasons why Bitcoin is proving to be a key part of AMC’s future strategies.

1. Growing adoption of Bitcoin

One of the biggest factors is the growing adoption of Bitcoin in the United States.

When it comes to Bitcoin, America is undoubtedly a champion, with survey showing that nearly 46 million Americans have bought at least some share of Bitcoin. The fact that these people are looking to add the de facto crypto leader to their personal financial plans further strengthens the adoption of Bitcoin.

The 46 million figure represents nearly 17% of America’s adult population, according to the New York Digital Investment Group.

Popular U.S. companies like Tesla, Square, and MicroStrategy hold billions of dollars in Bitcoin on their balance sheets. Additionally, payment technology companies including PayPal and Square have generated billions of dollars in revenue by offering crypto services. Credit card companies such as Mastercard and Visa have also worked aggressively to expand their crypto services to capitalize on revenue generation opportunities.

2. Memes stock status

In 2021, AMC saw a stunning change from most shorted stock to meme stock status, thanks to the explosive retail frenzy fueled by Reddit earlier this year.

The move said to accept Bitcoin memes would also help attract younger traders and investors, who have been the main players in the nearly 1,500% surge in stock prices since the start of this year.

During the second quarter earnings call, Aron said the new shareholders were quite excited about the cryptocurrency, adding that the company would put the technology in place to accept Bitcoin by the end of the year. .

3. Personal interest of the CEO

As adoption by institutions and businesses increased at a steady pace, Aron also began to learn about the emerging market.

“I must have learned more over the past six months about blockchain and cryptocurrency than I learned over the past decade,” Aron said.

“This increased knowledge has given me the confidence to tell all of you today that AMC is officially announcing … that at the end of the year we will have the computer systems in place to accept Bitcoin,” he said. added Aron.

4. Digitization and modernization

As Covid-related restrictions shifted consumer trends towards online systems and mobile apps, AMC also plans to shift to a modern approach.

Meanwhile, the adoption of Bitcoin suggests that it will likely become the future internet currency.

The AMC boss said the company is exploring other avenues of crypto as well.

In addition to adding an encrypted payment option, the company is also working with popular payment apps, including Apple Pay and Google Pay, and plans to add them as a payment option by the end of this year.

What else is included in the AMC transformation plan?

To generate sustainable growth, the company plans to broadcast sporting events in its theaters and is looking to engage with leagues to secure the streaming rights.

There’s also an option to partner with the darling of the stock GameStop meme. Indeed, conference call participants questioned whether AMC plans to partner with GameStop to broadcast gaming competitions to the big screen.

“It takes two to tango,” said Aron. “We’re ready. We haven’t contacted GameStop yet, but we plan to do so.”

An AnHSB survey released last year found that 36% of U.S. small and medium businesses accept cryptocurrency. But the road to widespread cryptocurrency adoption remains to be proven with short-term market volatility.

Bitcoin itself has grown wildly during the pandemic lockdown, as job uncertainty caused by the coronavirus has pushed more people to speculate in alternative currencies. The world’s first cryptocurrency, priced at less than a cent when it was created over a decade ago, now has a market cap of over $ 922 billion, according to CoinMarketCap.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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